SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended July 27, 1996 Commission File Number 2-37706
Bowles Fluidics Corporation
(exact name of registrant as specified in its charter)
MARYLAND 52-0741762
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6625 Dobbin Road, Columbia, Maryland 21045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 381-0400
Indicate by check mark whether the registrant has filed all annual,
quarterly and other reports required to be filed with the Commission within
the past 90 days and in addition has filed the most recent annual report
required to be filed.
Yes X No
Indicate the number of shares outstanding of each issuer's classes of common
stock, as of January 27, 1996.
Class Outstanding at July 27, 1996
Common Stock, $.10 12,610,011 shares
<PAGE>
INDEX
BOWLES FLUIDICS CORPORATION
FOR THE NINE MONTHS ENDED JULY 27, 1996
Page
PART I. Financial Information Number
Item 1. Financial Statements
Consolidated Statements of Income
For the three and nine months ended
July 27, 1996 and July 29, 1995 ............. 3
Consolidated Balance Sheets
July 27, 1996 and October 28, 1995 .......... 4
Consolidated Statements of Cash Flows
For the nine months ended
July 27, 1996 and July 29, 1995 ............. 5
Notes to Consolidated Financial Statements .... 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations .............................. 7
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K ............. 10
Exhibit 11 .......................... 11
Exhibit 20 .......................... 13
Form 8-K ............................ 15
2
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
July 27, July 29, July 27, July 29,
1996 1995 1996 1995
----------- ----------- ------------- --------------
<S> <C>
Net Sales $4,101,894 $3,757,758 $13,339,251 $12,370,195
Cost of Sales 2,905,128 2,548,980 8,839,888 7,998,362
----------- ----------- ----------- -----------
Gross profit 1,196,766 1,208,778 4,499,363 4,371,833
Selling, general and
administrative expenses 987,879 576,291 2,819,659 1,854,611
Research and development costs 275,838 156,859 854,844 462,071
----------- ----------- ----------- -----------
Operating Income/(Loss) (66,951) 475,628 824,860 2,055,151
Interest expense - (7,012) (6,018) (32,235)
Other income, net 13,029 25,063 50,877 70,842
----------- ------------ ----------- -----------
Income/(Loss) before taxes (53,922) 493,679 869,719 2,093,758
Provision for income taxes (35,148) 182,371 297,688 782,120
----------- ------------ ----------- -----------
Net Income/(Loss) (18,774) 311,308 572,031 1,311,638
Preferred stock
dividends accrued 18,662 18,662 55,986 55,986
----------- ------------ ----------- -----------
Income/(Loss) applicable to
common shareholders $ (37,436) $ 292,646 $ 516,045 $ 1,255,652
=========== =========== =========== ===========
Primary earnings per share $ .00 $ .02 $ .04 $ .10
=========== =========== =========== ===========
Fully diluted earnings per share $ .00 $ .02 $ .03 $ .08
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
July 27, October 28,
1996 1995
------------- --------------
Assets
Current
Cash and cash equivalents $1,307,280 $ 676,981
Investments available for sale 767,951 679,513
Accounts receivable 2,102,342 2,761,394
Inventories 1,664,664 1,899,346
Other current assets 455,455 306,974
------------- -------------
Total current assets 6,297,692 6,324,208
------------- -------------
Property and equipment, net 3,180,976 2,821,804
Other assets 353,546 146,434
------------- -------------
Total assets $9,832,214 $9,292,446
============= =============
Liabilities and Stockholders' Equity
Current
Accounts payable - trade $ 596,443 $ 995,421
Accrued expenses and other liabilities 988,366 852,121
Income taxes payable - 111,441
Current portion of long-term debt - 68,857
------------- -------------
Total current liabilities 1,584,809 2,027,840
Long-term debt - 202,811
Other liabilities 952,467 282,904
Deferred income taxes 149,000 149,000
------------- -------------
Total liabilities 2,686,276 2,662,555
------------- -------------
Commitments and Contingencies
Stockholders' Equity
8% Convertible preferred stock 933,080 933,080
Common stock 1,261,001 1,261,001
Additional paid-in capital 2,726,583 2,726,583
Retained earnings
($2,407,467 deficit eliminated
at 10/29/94) Note 5 2,225,274 1,709,227
------------- ------------
Total stockholders' equity 7,145,938 6,629,891
------------- ------------
Total liabilities and stockholders' equity $9,832,214 $9,292,446
============= ============
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For the nine months ended
July 27, July 29,
1996 1995
----------- ----------
Net Income $ 572,031 $1,311,638
Adjustments to reconcile net income
provided by operating activities:
Depreciation and amortization 548,731 495,049
Deferred income taxes (294,600) -
(Gain)/Loss on disposal of assets 15,460 (2,715)
Accretion of interest on investments (10,832) (11,438)
---------- ----------
830,790 1,792,534
---------- ----------
Change in operating accounts:
Accounts receivable 659,052 166,306
Inventories 234,682 (57,126)
Other assets (60,993) (60,276)
Accounts payable (398,978) (367,896)
Accrued expenses 136,245 (22,587)
Income taxes payable (111,441) (449,997)
Other liabilities 662,959 41,644
---------- ----------
Change in operating accounts 1,121,526 (749,932)
---------- ----------
Cash provided by operating activities 1,952,316 1,042,602
---------- ----------
Investing activities:
Capital expenditures (898,095) (566,219)
Patents & Trademarks - (24,583)
Proceeds from sale of equipment - 31,025
Purchase of investments (566,664) (759,494)
Proceeds from sale of investments 489,058 484,807
---------- ----------
Net cash used in investing activities (975,701) (834,464)
---------- ----------
Financing activities:
Principal payment of debt (271,668) (508,687)
Preferred stock dividend (74,648) (74,646)
---------- ----------
Net cash used in financing activities (346,316) (583,333)
---------- ----------
Increase(decrease) in cash and cash
equivalents 630,299 (375,195)
Cash and cash equivalents - beginning of period 676,981 1,557,230
---------- ----------
Cash and cash equivalents - end of period $1,307,280 $1,182,035
========== ==========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
BOWLES FLUIDICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - General
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the financial position as of July 27,
1996, the results of operations and cash flows for three and nine months ended
July 27, 1996 and July 29, 1995.
While the Company believes that the disclosures presented are adequate to
make the information not misleading, it is suggested that these financial
statements be read in conjunction with the financial statements and the notes
included in the Company's latest annual report on Form 10-K.
NOTE 2 - Inventories
Inventories are comprised of:
July 27, October 28,
1996 1995
Raw Material $ 570,806 $ 703,864
Work and tooling in process 187,899 416,090
Finished Goods 905,959 779,392
---------- -----------
Total $1,664,664 $1,899,346
========== ===========
NOTE 3 - Property and Equipment, net
Property and Equipment, net, is comprised of:
July 27, October 28,
1996 1995
Production machinery and equipment $ 4,240,055 $ 4,047,602
Office furniture and equipment 1,899,545 1,580,026
Laboratory and machine shop equipment 1,366,182 1,159,087
Leasehold improvements 633,052 539,274
---------- ----------
Total property and equipment 8,138,834 7,325,989
Less accumulated depreciation (4,957,858) (4,504,185)
---------- ----------
Property and equipment, net $ 3,180,976 $ 2,821,804
========== ==========
NOTE 4 - Debt
The Board of Directors authorized management to pay all of the outstanding
debt with Mercantile-Safe Deposit & Trust Company as of February 1, 1996.
NOTE 5 - Quasi reorganization
Effective October 29, 1994, the Board of Directors approved a
quasi-reorganization which had the impact of eliminating the retained earnings
deficit as an adjustment to the additional paid-in capital.
NOTE 6 - Termination of sales agreement
In the third quarter ended July 27, 1996, the Company accrued an additional
selling expense of $207,400, net of income taxes, related to the planned
termination of the sales agreement with one of its manufacturers'
representatives. For the nine months ended July 27, 1996, the company accrued
$465,400, net of income taxes, for the planned termination of the sales
agreement with its manufacturers' representatives. The payments are expected to
commence in May 1997.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the attached
financial statements and notes thereto, and with the Company's audited financial
statements and notes thereto for the fiscal year ended October 28, 1995.
RESULTS OF OPERATIONS
Third Quarter FY 1996 Compared with Third Quarter FY 1995
The Company achieved record sales for a third quarter in this period of fiscal
year 1996. Net income, however, declined to a small loss in the same period
versus last year's third quarter as a result of an additional charge related to
the planned termination of the Company's sales agreement with one of its
manufacturer's representatives and increases in expenses incurred for research
and development.
Net sales in the third quarter of FY 1996 rose to $4,101,894, 9% above last
year's third quarter sales of $3,757,758. The net loss was $18,774, $330,082
lower than last year's third quarter net income of $311,308.
Product sales of light vehicle windshield washer and defroster nozzles of
$4,012,500 increased 11% over last year's third quarter sales of $3,609,704,
principally due to a larger volume of shipments of newly designed products.
Sales of prototype and production tooling of $89,394 for future product
manufacturing decreased 40% from last year's third quarter, reflecting a lower
rate of culmination of new windshield washer and defroster nozzle programs.
Gross profit in this year's third quarter was $1,196,766, 1% below last year's
third quarter of $1,208,778. Higher product sales added to this profit, but
lower margins on newly designed products and higher manufacturing expenses
offset this gain. While having little net impact on gross profit, engineering
resources were redirected in the FY 1996 third quarter more towards applications
engineering, i.e., the customization of new products, with less emphasis on
tooling and product qualification activities. One significant new product is the
air conditioning outlets for an automotive customer, for which prototypes are
scheduled for delivery in the fall.
Selling, general and administrative expenses were 71% higher principally due to
an increase in sales commissions. The sales commissions include an additional
charge of $340,000 related to the planned termination of the Company's sales
agreement with one of its manufacturer's representatives. The Company is
reorganizing its sales force using employees rather than independent
representatives.
Research and development costs rose 76% as greater efforts were applied to the
development of new products for both automotive and nonautomotive applications.
Operating income was a loss of $66,951 in this year's third quarter versus
income of $475,628 in the prior year's third quarter.
Provision for income taxes, both federal and state, was determined based upon an
estimate of the total year's pretax income. The effective tax rates for both
quarters were approximately the same.
7
<PAGE>
Nine Months Ended July 27, 1996, Compared with Nine Months Ended July 29, 1995
For the first nine months of the 1996 fiscal year ended July 27, 1996, sales
rose but net income decreased primarily because of additional charges related to
the termination of the Company's sales agreement, product profit margin
declines, and increases in research and development expenses.
Net sales gained 8% to $13,339,251 for the first nine months of the 1996 fiscal
year compared with $12,370,195 in the comparable period in 1995. Net income of
$572,031 was 56% or $739,607 below the results of the prior fiscal year's first
nine months.
Product sales of light vehicle windshield washer and defroster nozzles of
$12,824,542 rose 11% in the first nine months of fiscal year 1996 compared with
the same period in the prior fiscal year, principally due to increased shipments
of newly designed products. Sales of prototype and production tooling of
$514,709 in FY 1996 for future product manufacturing declined 40% versus sales
of $856,874 for the first nine months of the 1995 fiscal year. The decline
reflects the lower rate of culmination of new windshield washer and defroster
nozzle programs.
Gross profit in the first nine months of the 1996 fiscal year gained 3% to
$4,499,363 from $4,371,833 in the similar 1995 period as a result of the larger
product sales volume. However, lower margins on new products reduced overall
product profit margins. During the first nine months of this fiscal year, with
little impact on gross profit, engineering resources were redirected towards
more applications engineering, i.e., the customization of new auto products,
from tooling and product qualification activities. One significant new product
is the air conditioning outlets for an automotive customer, for which prototypes
are scheduled for delivery in the fall.
Selling, general and administrative expenses were 52% higher in the first nine
months of fiscal year 1996 compared with the similar 1995 period principally
because of increases in sales commissions. The sales commissions include
additional accruals of $760,000 related to the planned termination of the
Company's sales agreement with its manufacturer's representatives. The Company
is reorganizing its sales force using employees rather than independent
representatives.
Research and development costs rose 85% versus the same period in the last
fiscal year as greater efforts were applied to the development of new products
for both automotive and nonautomotive applications.
Operating income decreased 60% or $1,230,291 to $824,860 in this year's first
nine months versus $2,055,151 in last year's comparable period.
Provision for income taxes, both federal and state, was determined based upon an
estimate of the total year's pretax income. The effective tax rates for both
years' nine months were essentially the same.
FINANCIAL CONDITION
The Company's position in cash, cash equivalents, and current investments
available for sale on July 27, 1996, reached $2,075,231, an increase of $718,737
over the previous fiscal year end on October 28, 1995. The working capital on
the same date increased $416,515 from the last fiscal year end. The current
ratio rose from 3.1 to 4.0 during the first nine months. Accounts receivable
declined as a result of the timing of receipts from a major customer as well as
lower sales during the two months prior to July 27, 1996, versus October 28,
1995. Inventories also declined because of lower tooling orders in process in
July versus the previous fiscal year end. Current liabilities decreased with the
paydown of accounts payable.
8
<PAGE>
Cash provided by operating activities was $1,952,316 during the first nine
months of the 1996 fiscal year compared with $1,042,602 in last year's similar
period. This year's cash flow from net income was lower, but the investments in
accounts receivable and inventories were reduced more than in last year's
comparable period and the additional accrued sales commissions were not paid as
yet.
Capital expenditures were $898,095 in this fiscal year's first nine months,
$331,876 greater than last year as more funds were spent on computer facilities
and production equipment.
Cash used for financing activities was lower than last year as the early payment
of all outstanding bank debt this year was less than the early payment of
certain notes last year.
The quasi-reorganization that was carried out at October 29, 1994, was
implemented in order to eliminate the deficit in retained earnings. The deficit
had occurred due to the settlement of a lawsuit in 1991 related to prior years'
activities and operating losses related to discontinued products prior to 1980.
With new products and profitable operations, management desired to reflect the
current financial strength of the Company. The only impact on the financial
statements was to record the elimination of the retained earnings deficit to
date and the corresponding reduction in additional paid-in capital. Upon
evaluation, the Company's assets and liabilities did not require readjustments.
North American light vehicle production (excluding Mexican output) by the three
major U.S. automotive companies, which generates most of the Company's sales,
decreased 14% in the first calendar quarter of 1996 versus the same period in
1995 and increased 6% in the second quarter. Production for the third calendar
quarter of 1996 is forecasted by Ward's Automotive Reports to increase 9% over
last year's third quarter.
The Company's management believes that the present and planned production
capacity should be satisfactory to meet the anticipated demands referred to
above, additional market penetration, and new product deliveries. Cash flow from
operations and available cash are expected to provide the funds needed for
future product development, capital expenditures, and working capital
requirements. The Company currently has no debt.
9
<PAGE>
BOWLES FLUIDICS CORPORATION
PART II. OTHER INFORMATION
FOR THE NINE MONTHS ENDED JULY 27, 1996
Item 6. Exhibits and Reports on Form 8-K
Exhibits Description
(a) Exhibit 11 Computation of Earnings
Per Common Share
Exhibit 20 Report furnished to Security Holders
(b) Reports on Form 8-K
10
BOWLES FLUIDICS CORPORATION
PART II. OTHER INFORMATION
Item 6. (a) EXHIBIT 11 - CALCULATION OF EARNINGS PER SHARE
A. PRIMARY EARNINGS PER COMMON SHARE AND COMMON EQUIVALENT SHARES
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
July 27, July 29, July 27, July 29,
1996 1995 1996 1995
-------------- -------------- --------------- ---------------
<S> <C>
Calculation of Net Income
Net income/(loss) per books $ (18,774) $ 311,308 $ 572,031 $ 1,311,638
Less: Dividends on convertible
preferred stock 18,662 18,662 55,986 55,986
---------- ---------- ---------- ----------
Net income/(loss) as adjusted $ (37,436) $ 292,646 $ 516,045 $ 1,255,652
========== ========== ========== ==========
Calculation of Outstanding Shares
Weighted average of common
shares outstanding 12,610,011 12,590,011 12,610,011 12,590,011
Add: Assumed exercise of stock
options 78,457 124,856 91,233 108,836
---------- ---------- ---------- ----------
Number of common shares
outstanding adjusted 12,688,468 12,714,867 12,701,244 12,698,847
========== ========== ========== ==========
Primary earnings per common share $ .00 $ .02 $ .04 $ .10
========== ========== ========== ==========
</TABLE>
11
<PAGE>
BOWLES FLUIDICS CORPORATION
PART II. OTHER INFORMATION
Item 6. (a) EXHIBIT 11 - CALCULATION OF EARNINGS PER SHARE (continued)
B. FULLY DILUTED EARNINGS PER SHARE
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
July 27, July 29, July 27, July 29,
1996 1995 1996 1995
--------------- -------------- -------------- ---------------
<S> <C>
Net Income/(loss) per books $ (18,774) $ 311,308 $ 572,031 $ 1,311,638
========== ========== ========== ==========
Weighted average of common
shares outstanding 12,610,011 12,590,011 12,610,011 12,590,011
Add: Assumed conversion of
preferred stock 3,732,320 3,732,320 3,732,320 3,732,320
Assumed exercise of stock
options 78,457 128,276 91,233 128,276
---------- ---------- ---------- ----------
Number of shares 16,420,788 16,450,607 16,433,564 16,450,607
========== ========== ========== ==========
Fully diluted earnings
per share $ .00 $ .02 $ .03 $ .08
========== ========== ========== ==========
</TABLE>
12
Exhibit 20
BOWLES FLUIDICS CORPORATION
6625 Dobbin Road, Columbia, Maryland 21045-4707 USA
Phone: 410-381-0400 Fax: 410-381-2718
September 10, 1996
TO THE STOCKHOLDERS OF BOWLES FLUIDICS CORPORATION:
Net sales rose and net income decreased compared to last year's third quarter. A
larger volume of washer and defroster nozzle shipments more than made up for a
40% decrease of tooling sales to produce a 9% increase in net sales.
But charges related to planned transition of our automotive sales force from
independent representatives to BFC employees and the increase in research and
development expenses committed to new products have contributed to a decrease in
net income.
A significant part of this development effort is the AC outlet program, for
which prototype parts will be delivered to one automotive customer this fall as
scheduled.
The QS-9000 pre-assessment has been completed and the audit for registration has
been scheduled for late September.
It is expected that the present and planned production capacity should be
satisfactory to meet anticipated demands including additional market penetration
and new product deliveries. Cash flow from operations and available cash should
provide the funds needed for future product development, capital expenditures,
and working capital requirements.
Sincerely,
Ronald Stouffer
President
RS:lto
Enclosure
13
<PAGE>
BOWLES FLUIDICS CORPORATION EXHIBIT 20
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
July 27, 1996 July 29, 1995 July 27, 1996 July 29, 1995
------------- ------------- ------------- -------------
<S> <C>
Net Sales $4,101,894 $3,757,758 $13,339,251 $12,370,195
Cost of Sales 2,905,128 2,548,980 8,839,888 7,998,362
Selling, General and Administrative Expenses 987,879 578,291 2,819,659 1,854,611
Research and Development Costs 275,838 156,859 854,844 462,071
Interest Expense and Other (Income) and Expense, Net (13,029) (18,051) (44,859) (38,607)
---------- ---------- ----------- -----------
Income/(Loss) before Taxes $ (53,922) $ 493,679 $ 869,719 $ 2,093,758
Provision for Taxes (35,148) 182,371 297,688 782,120
---------- ---------- ----------- -----------
Net Income/(Loss) $ (18,774) $ 311,308 $ 572,031 $ 1,311,638
========== ========== =========== ===========
Net Income per Share
Primary $ - $ 0.02 $ 0.04 $ 0.10
Fully Diluted $ - $ 0.02 $ 0.03 $ 0.08
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Unaudited Audited
July 27, 1996 October 28, 1995
<S> <C>
Assets
Cash and Cash Equivalents $1,307,280 $ 676,981
Investments Available for Sale 767,951 679,513
Accounts Receivable 2,102,342 2,761,394
Inventories 1,664,664 1,899,346
Other Current Assets 455,455 306,974
---------- ----------
Total Current Assets 6,297,692 6,324,208
Property, Plant and Equipment, Net 3,180,976 2,821,804
Other Assets 353,546 146,434
---------- ----------
Total Assets $9,832,214 $9,292,446
========== ==========
Liabilities and Stockholders' Equity
Accounts Payable--Trade $ 596,443 $ 995,421
Accrued Expenses and Other Liabilities 988,366 852,121
Income Taxes Payable - 111,441
Current Portion of Long-Term Debt - 68,857
---------- ----------
Total Current Liabilities 1,584,809 2,027,840
Long-Term Debt - 202,811
Other Liabilities and Deferred Income Taxes 1,101,467 431,904
---------- ----------
Total Liabilities 2,686,276 2,662,555
---------- ----------
8% Convertible Preferred Stock 933,080 933,080
Common Stock 1,261,001 1,261,001
Additional Paid-in Capital 2,726,583 2,726,583
Retained Earnings 2,225,274 1,709,227
---------- ----------
Stockholders' Equity 7,145,938 6,629,891
---------- ----------
Total Liabilities and Stockholders' Equity $9,832,214 $9,292,446
========== ==========
</TABLE>
14
<PAGE>
BOWLES FLUIDICS CORPORATION
PART II. OTHER INFORMATION
Item 6. (b) Reports on Form 8-K
July 23, 1996
Item 1. It is with regret that we inform the stockholders of Bowles
Fluidics Corporation of the death of William Ewing, Jr., on
Friday, June 28, 1996. As a result of the death of William
Ewing, Jr., control of the corporation has passed to William
Ewing III, who, as Trustee of various Ewing family trusts,
controls the votes of more than 50% of the outstanding shares.
Item 5. By formal action of the Board at their meeting today
William Ewing III, was unanimously elected Chairman of the
Board to fill the vacancy left by his father's death.
In addition, Julian Lazrus, the Vice Chairman of the Board,
resigned from the Board.
15
<PAGE>
FORM 10-Q
BOWLES FLUIDICS CORPORATION
Pursuant to the requirements of the Securities Exchange act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BOWLES FLUIDICS CORPORATION
Date _______________ By ________________________
Ronald D. Stouffer
President
Date _______________ By ________________________
David A. Quinn
Vice President-Finance
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-26-1996
<PERIOD-END> JUL-27-1996
<CASH> 1,307,280
<SECURITIES> 767,951
<RECEIVABLES> 2,102,342
<ALLOWANCES> 0
<INVENTORY> 1,664,664
<CURRENT-ASSETS> 6,297,692
<PP&E> 8,138,834
<DEPRECIATION> 4,957,858
<TOTAL-ASSETS> 9,832,214
<CURRENT-LIABILITIES> 1,584,809
<BONDS> 0
0
933,080
<COMMON> 1,261,001
<OTHER-SE> 4,951,857
<TOTAL-LIABILITY-AND-EQUITY> 9,832,214
<SALES> 4,101,894
<TOTAL-REVENUES> 4,101,894
<CGS> 2,905,128
<TOTAL-COSTS> 4,168,845
<OTHER-EXPENSES> (13,029)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (53,922)
<INCOME-TAX> (35,148)
<INCOME-CONTINUING> (18,744)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (18,744)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
